Warning - Higher rate of CGT could still effect basic rate tax payers!
Tax Planning and Financial

BB_470
BB_470
0 Thanks
22 Posts
13 years ago
0
Dear Landlords,

The new higher rate could still effect you even though you are a lower rate tax payer!! Go to today's The Telegraph (24/06/10) some of which I have reproduced here:

...'accountants gave warning that many basic-rate taxpayers could have been misled by Mr Osborne's statement during the Budget.
The Chancellor said: "Low and middle income savers who pay income tax at the basic rate make up over half of all capital gains taxpayers. They will continue to pay tax on their capital gains at 18 per cent."
Frank Nash, partner at Blick Rothenberg, said: "They may well be basic rate taxpayers, but any gains they make on selling an asset is treated by the taxman as if it were income. This could well force them into a higher-rate tax bracket.
"With shares and antiques, that's fine because you can sell a little bit at a time and make sure you don't go into the higher rate. But with property there's nothing you can do about it. You have to sell all of the property at once.
"The majority of long-term property investors will be pushed into the higher tax band."
The National Landlords Association said it believed "the vast majority" of Britain's one million buy-to-let landlords would, on selling their investment, fall into the higher 28 per cent rate, because most are long-term investors sitting on profits of well over the £10,100 threshold.
Someone earning £26,000 a year and normally a basic-rate taxpayer, for instance, will be pushed into the higher-rate bracket if they have a taxable profit of £12,000 or more, because this capital gain would push them into the higher-rate bracket which starts at £37,400.'


Please Login

You must be logged in to participate in our forums, to continue please login below.

Not a member? From only £99 you can join in the discussion and get access to member's only resources and services.

As the home for landlords, the NRLA are here to help you save time, save money, and stay compliant. NRLA membership gives you access to a vast range of expertise, resources, and exclusive member benefits and savings, designed to help and empower members. We also play a pivotal role in campaigning and championing the interests of landlords.